Second-Party Opinion Download

Sustainalytics is of the opinion that First Capital REIT’s Green Financing Framework is credible and impactful and aligns with the four core components of the Green Bond Principles 2018 and the Green Loan Principles 2021. This assessment is based on the following:

USE OF PROCEEDS 

The eligible categories for the use of proceeds –Green Buildings; Energy, Carbon and Resource Efficiency; Renewable Energy;  Pollution Prevention and Control;  Clean Transportation;  Climate Change Adaptation; and Biodiversity and Conservation – are aligned with those recognized by the Green Bond Principles 2018 and the Green Loan Principles 2021. Sustainalytics considers that investments in the eligible categories will lead to positive environmental impacts and advance the UN Sustainable Development Goals, specifically Goals 6, 7, 9, 11, 12, 13 and 15.

PROJECT EVALUATION / SELECTION 

First Capital’s ESG Taskforce Committee, comprised of senior leadership members from its Sustainability, Development, Operations, Legal and Finance teams, will oversee the implementation of its Framework. The Committee will be responsible for identifying and evaluating projects in line with the eligibility criteria, while First Capital’s senior leadership team will be responsible for providing final approval. Sustainalytics considers the project selection process in line with market practice.

MANAGEMENT OF PROCEEDS 

First Capital will deposit the net proceeds from each Green Financing Instrument issuance into its general bank account where they will be earmarked for allocation to Eligible Green Projects. The Framework permits allocation to eligible green projects originated no more than 36 months prior to issuance and intends to fully allocate proceed within 36 months of each issuance. Pending full allocation, net proceeds may be utilized for repayment of First Capital’s credit facilities, held in cash or cash equivalents, or for general corporate purposes. This is in line with market practice. 

REPORTING 

First Capital commits to providing annual reporting updates on its website. Allocation reporting will include a description of the Eligible Green Projects, as well as the amount of net proceeds allocated to each project, the balance of unallocated net proceeds, and the share of proceeds used for refinancing vs. financing, while impact reporting will include several quantitative metrics, such as the level of green building certifications achieved. Sustainalytics views First Capital’s allocation and impact reporting as aligned with market practice.